Question: Johnson products is considering purchasing a new milling machine that costs $100,000. The machines installation and shipping costs will total $2,500. If accepted, the milling
Johnson products is considering purchasing a new milling machine that costs $100,000. The machines installation and shipping costs will total $2,500. If accepted, the milling machine project will require an initial net working capital investment of $20,000. Johnson plans to depreciate the machine on a straight-line basis over a period of 8 years.about a year ago, Johnson paid $10,000to a consulting firm to conduct a feasibility study of a new milling machine, Johnson's marginal tax rate is 40 percent.
A. calculate the projects net investment (NINV). $122,500 answer
B. calculate the annual straight line depreciation for the project.
C calculate MACRS depreciation
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